Metro Vancouver industrial grapples with rising cost and demand

January 25, 2017 5:58 pm

Metro Vancouver’s industrial vacancy rate has plunged to 1.5 per cent, the lowest in Canada, as a diverse demand base and plunging land inventory create a robust but challenging sector heading into 2017.

Film and technology companies are increasingly seeking space that was once the sole target of retail distribution, warehouse and manufacturing outfits.

In 2016, movie and film producers seized more than 28 per cent of all the industrial space leased in Metro Vancouver, often outbidding traditional tenants to become the dominant new player in a tight market. The unprecedented demand from the billion-dollar B.C. film industry, which has leased at least 1.5 million square feet since mid-2015, has helped to define the entire industrial sector and drive leasing rates higher.